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C
Crunch1
March 18, 2021
Question

Transfer Credit Card balance from Personal Card to Business Card

  • March 18, 2021
  • 2 replies
  • 0 views

Hello everyone,

 

I'm a sole proprietor using QuickBooks Desktop Pro 2020.

 

I was awaiting a new credit card from my bank that offered 15 months zero financing in order to purchase some equipment that was on sale. The new card did not arrive before the sale ended so I had to make the purchase with my personal card.

 

When the new card arrived I transferred the balance to the new card with zero financing for 15 months, I had to pay small transfer fee but it is inconsequential compared to the savings.

 

Again, I'm a sole proprietor so I don't have to worry about a corporate veil being pierced.

 

I would be very appreciative if someone could inform me how to enter this into QuickBooks Desktop Pro 2020.

 

Best,

Crunch

 

 

2 replies

DivinaMercy_N
DivinaMercy_N
March 19, 2021

The Community has got your back, @Crunch1.

 

The amount you pay for the expenses is a loan to your company. To record this in QuickBooks, you can either create a liability account or a credit card account and post the transactions there. Here's how:

  1. Go to the Lists menu and choose Chart of Accounts.
  2. Click the New in the Account drop-down.
  3. Select an account type (Other Account Types for the Liability account and Credit card for the Credit Card account), then select Continue.
  4. Complete the account details.
  5. Hit Save & Close.

 

Moving forward, use the new card to pay for those expenses. Then, to reimburse the money, you can either create a check or an expense. 

 

Also, it's recommended to always create a backup copy of your company file to ensure you have an original copy that you can restore at any time in case of data loss or damage.

 

Let me know if you need further assistance in recording transactions in QuickBooks. I'm always here to help. Have a good one.

C
Crunch1Author
March 19, 2021

DivinaMercy_N

 

Thank you for your help, I'm very inexperienced in these matters.

 

I'm starting to do this now. Is it "cleaner" to create a current liability account rather than a credit card account for my personal card? I'm leaning toward the current liability account.

 

Once I create the new account I'm assuming I should enter an opening balance, is this correct?

 

I think I'm confused when you state "moving forward, use the new card to pay for those expenses.", do you mean the current charges from the personal card or any new purchases? When I pay the account with the new credit card when or how do I enter the transfer fee?

 

Thanks again for the help, I appreciate it much.

 

Crunch

C
Crunch1Author
March 22, 2021

Can anybody help with my questions in my second reply?

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